The difference between temporary factor- price differentials and equilibrium factor- price differentials is that
A) temporary differentials are affected by supply and demand whereas equilibrium differentials are not.
B) the government can only eliminate equilibrium differentials.
C) equilibrium differentials lead to,and are eliminated by,factor mobility whereas temporary differentials do not.
D) only equilibrium differentials are interesting for policy purposes.
E) temporary differentials lead to,and are eliminated by,factor mobility whereas equilibrium differentials do not.
Correct Answer:
Verified
Q30: Consider the following demand and supply curves
Q31: Choose the statement that best describes the
Q32: Consider the following demand and supply curves
Q33: Consider a firm's demand curve for labour.If
Q34: Consider the following production and cost
Q36: In a Lorenz curve diagram,the size of
Q37: Non- monetary considerations tend to be most
Q38: Consider the following demand and supply curves
Q39: Consider the following production and cost
Q40: Consider labour that is hired for $18
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents